INDUSTRY SIZE / CONTRIBUTION TO GDP,
MARKET OVERVIEW,
PORTERS FIVE FORCE MODEL,
COMPANY INFORMATION,
SWOT ANALYSIS OF ITC LTD.
PRODUCT PORTFOLI OF ITC LTD.
COMPETITOR ANALYSIS,
MARKETING MIX,
STP OF ITC SAVLON
PRODUCT LIFE CYCLE OF ITC SAVLON HANDWASH
SALES FORCASTING
DISTRIBUTION CHANNEL
DIGITAL MARKETING STRATEGY OF ITC SAVLON
DATA REPRESENTATION( using SSPS)
FINDING
CONCLUSION
THANKY YOU
2. FMCG
HEALTH CARE
HOME CARE AND PERSONAL CARE
FOOD AND BEVERAGE
a) Herbs & medicine
a) Fabric wash-laundry soaps
b) Household cleaners
c) Skin care: creams, lotions
d) Personal wash: soaps
e) Cosmetic & toiletries
a) Confectionary
b) Tea and Coffee
c) Chocolates & Ice-cream
d) Health Beverages
e) Snacks Foods
f) Staples/Cereals
FMCG Sector is divided into three segments
3. INDUSTRY SIZE / CONTRIBUTION TO GDP
FAST MOVING CONSUMER
GOODS (FMCG) is the fourth
largest sector in Indian economy.
There are three main segments in
the sector – food and beverage that
accounts for 19% of the sector
healthcare which accounts for
31% and the thousand and
personal care which accounts for
the remaining 50%.
FMCG contributes for 27% of
the country’s GROSS
DOMASTIC PRODUCT
(GDP).
The rural segment of FMCG is
large contributor to the overall
revenue generated by the
FMCG sector in India which
accounts for 45%.
Urban segment accounted for a
revenue share of 55% in the
overall revenues recorded by
FMCG sector in India.
Revenues of FMCG sector are
estimated to reach us $ 103.7
billion in 2020.
4. People are gracefully embracing Ayurveda products, which has resulted in growth
of FMCG major, Patanjali Ayurveda, with a m-cap of US$ 14.94 billion. The
company aims to expand globally in the next 5 to 10
2
1
3
4
Growing awareness, easier access and changing lifestyles have been the key growth
drivers for the sector. The number of online users in India is likely to cross 850 million
by 2025.
Household and Personal Care is the leading segment, accounting for 50 per cent of the
overall market. Hair care (23 per cent) and Food and Beverages (19 per cent) comes next in
terms of market share
Retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$ 672 billion in
2016, with modern trade expected to grow at 20 per cent - 25 per cent per annum, which is
likely to boost revenues of FMCG companies.
MARKET OVERVIEW
The FMCG sector has grown at annual average of about 11
percent over the late decade.1
2
3
The sector expected to grow at a compounded annual
growth rate (CGAR) of 20.6% in FY 2020.
4
MARKET OVERVIEW
In the long run, with the system becoming more
transparent and easily compliable, demonetization is
expected to benefit organized players in the FMCG
industry.
FMCG products account for 50 per cent of total rural
spending.
5. GROWING DEMAND:- INDIA'S CONTRIBUTION TO
GLOBAL CONSUMPTION IS EXPECTED TO GET
DOUBLE TO 5.8% BY 2018
POLICY SUPPORT:- Initiatives Like Food Security Bill And
Direct Cash Transfer Subsidies Reach About 40% Of Household
In India.
C
B
A
GROWTH PATTERN
ATTRACTIVE OPPORTUNITIES:- Increase In Disposable
Income In Rural India And Low Penetration Level In Rural Market
Offer Room For Growth
HIGHER INVESTMENT:- Many Players Like Patanjali,
Dabur Etc. Are Planning To Expand Into New Geographic's And
Categories.
6. PORTERS FIVE FORCE MODEL
BARGAINING POWER OF SUPPLIER
• Low- big FMCG companies are able
to dictates the prices through local
sourcing from a fragmented group of
key commodity suppliers
THREATS OF NEW ENTRANTS
• MEDIUM- HUGE INVESTMENTS IN
SETTING UP DISTRIBUTION
NETWORK AND PROMOTING
BRANDS
• SPENDING ON ADVERTISMENTS IS
AGGRESSIVE
THREATS OF SUBSTITUTE
• HIGH-PRESENCE OF MULTIPLE
BRANDS
• NARROW PRODUCT
DIFFERENTION UNDER MANY
BRANDS
• PRICE BAR
BARGAINING POWER OF BUYER
• HIGH -LOW SWITCHING COST
INDUCE THE CUSTOMER'S
PRODUCT SHIFT
• INFLUENCE OF MARKETING
STRETEGIES
• AVAILABILITY OF SAME OR
SIMILAR ALTERNATIVES
COMPETITORS
High-private label brands by
retailers are priced at a discount to
maintain brands limits competition
for the week brands
Highly fragmented industry as
more MNC are entering
7. COMPANY INFORMATION
Imperial Tobacco Company of India Ltd. It was established in
1910. It is a diversified conglomerate with businesses spanning
Fast Moving Consumer Goods comprising Foods, Personal
Care, Cigarettes and Cigars, Branded Apparel, Education &
Stationery Products, Incense Sticks and Safety Matches Hotels,
Paperboards and Packaging, Agri Business and Information
Technology. The Company was incorporated on August 24,
1910 under the name Imperial Tobacco Company of India
Limited. It converted into the name of the Company was
changed to India Tobacco Company Limited in 1970 and then
to I.T.C. Limited.
COMPANY SNAPSHOT
One of India’s most Admired and Valuable companies -
Market Capitalization: ~Rs. 3 lakh crores.
A US$ 10.8 billion enterprise by Gross Sales Value - 60% of
net revenue from non-Cigarette segments.
Leading Fast Moving Consumer Goods (FMCG) marketer in
India - Established over 25 world-class mother brands
within a short span of time
10-year Value Addition ~ Rs. 3.5 lakh crores (US$ 59
billion). - Among the top tax payers in the country
ITC & its Group Companies employ over 35,500 people
directly; Sustainable development models and value chains
have supported creation of ~6 million sustainable
livelihoods
CHAIRMAN & MD OF ITC LTD.
MR. SANJIV PURI
8. S
O
W
T
SWOT Analysis
Strengths
Opportunities
Weaknesses
Threats
1.ITC has a strong and experienced
management, Strong brand presence,
excellent products advertising
2. Diversified product and services portfolio
which includes FMCG, Hotel chains, paper &
packaging and agri-business
3. Over 6500 E-Choupal CSR activities and
sustainability initiatives enhance ITC’s brand
image reaching over 4 million farmers
1. ITC is still dependent on its tobacco
revenues and people have cheaper
substitutes and other brands.
2. Hostel industry has been able to
create a huge market share .
1. Strict government regulations and
politicizes regarding cigarettes.
2. Intense and increasing competition
amongst other FMCG Companies and hotel
chains
3. FDI in retails thereby allowing
international brands.
1. Tap rural markets and increase penetration
in urban market, increasing purchasing
power of people which increase in
demand of the product.
2. Mergers and acquisitions to strengthen the
brand
3. More publicity of hotel chains to increase
market share
9. 2PRODUCT AND SERVICES OFFRED BY THE COMPANY
ITC LTD.
Hotels
Lifestyle
Retailing
Information
Technology
FMCG
Cigarettes Foods
Personal Care
Products
Education and
Stationary
Matches, Incense
Sticks
Agribusiness
Paperboards,
paper and
packaging
10. Competitor Analysis & Market share
SL.NO COMPANY NAME REVENUE MARKET
SHARE*
INDIA TOBACCO COMPANY OF INDIA LTD. 52,035 crores 14%
1. HINDUSTAN UNILEVER LIMITED 34,487 crores 12%
2. PROCTER & GAMBLE (P&G) 6,768 crores 9%
3. NESTLE 12615.78 crores 3%
4. GODREJ CONSUMER PRODUCTS LTD. 5,773.76 crores 2%
5. BRITANNIA 10672.97crores 3%
6. COLGATE 4462.43 crores 1%
7. DABUR 8,829 crores 2%
8. MARICO 7,334 crores 1%
9. PHILIP MORRIS INTERNATIONAL 7,982 crores USD 14.6%
10. GALXO SMITH KLINE(GSK) 3,375.4 crores GBP 1%
11. 1
2
3
4
Savlon Hand-wash: The hand-washes come in three types. First type is
the double strength hand-wash used to clear tough dirt and grime. The
next type is the moisture shield hand-wash which is a combination of
the cleansing formula and moisturization. The third type is herbal
sensitive hand-wash which is used for sensitive skin. All these are
available in 185 ml, 200 ml and 750 ml bottles.
Savlon is priced for the low to mid income level population. The
aim is to increase the penetration in the market as it is being
currently dominated by Dettol and hence the pricing strategy in its
marketing mix is penetration pricing.
Savlon sachets of handwash come for as low as Rs.5 and for the
bottles the range is between Rs.75 and Rs.160. Refills are also
available for the handpumps at a similar price range. Which are all
lower than Dettol and other competitors
Savlon products are also available online on ecommerce platforms like
Big-Basket, Amazon etc. There are discounts offered based on the
quantities or packs through these portals. People prefer to shop online these
days and hence take advantage of these options. The company reduces on
SKU losses through because of the online marketplace option. They also
give people free samples in malls to disinfect their hands as they go ahead
with the shopping thus increasing the awareness. They are also tying up
with hospitals for orders where Savlon will be used in the washrooms.
They also plan to tie up with schools for the same.
Savlon markets through traditional channels more. It cuts back on
advertisement costs by printing its ads on magazines and newspapers
which have a large subscription base. In India, Savlon have ace
badminton player Saina Nehwal as their brand ambassador.
Savlon also have their digital handles on Facebook and Instagram where
they share their campaigns.
Analyze marketing mix (4ps)
Product Strategy Price/Pricing Strategy
Promotion & Advertising Strategy Place & Distribution Strategy
12. STP of the product
SEGMENTATION TARGETING POSITIONING
Demographic: Family Life Cycle:
Psychographic Segmentation:
Lifestyle , Personality, Self-concept:
Behavioral Segmentation
Benefit, User Status
MIDDLE INCOME GROUP
ALL AGE GROUP
UPPER CLASS, ALL AGE GROUP
IN HOUSEHOLD, LAUNDRY, HOSPITALS,
ETC.
Savlon Is Being Used In Hospital &
Nursing Homes For First Aids
& Was Also Used For Cleaning Wards,
Washing Linen Etc.
USED BY HOUSEHOLDS FOR HYGENIC
PURPOSE.
13. PRODUCT LIFE CYCLE OF ITC SAVLON HANDWASH
INTRODUCTION STAGE:
The brand Savlon was acquired by ITC in 2015, marking an entry
Into the health and hygienic segment. It purchased the Savlon &
Shower trademarks from Johnson & Johnson Ltd. India &
Johnson & Johnson Pte Ltd., Singapore.
In building the segment, Savlon has played the role of the market
Leader and the innovator.
GROWTH STAGE:
Savlon is present the antiseptics liquid market which is pegged to be
Rs 650 crores, hand wash – Rs 600 crores and entered in the sanitizer
Category which is pegged at Rs 70-80 crores, according to data from
market research firm Nielsen.
MATURITY STAGE :
The Stagnation of sales growth when a product has been accepted by
most potential customer.
DECLINE STAGE:
The Decline of Sales of a product as a result of its replacement (by
a substitute) or as it goes into disfavor among its customers.
15. DISTRIBUTION CHANNEL
Distribution:
Distribution channels can be defined as the chain/ set of interdependent organizations that are involved in the
process of making a product or service available for consumption, decisions regarding this are the most critical
ones that a management face.
The distribution channels of Savlon are explained below:
16. 31 75
2 4 6 8
START
FINISH
PPC : (Pay-
per-click)
Affiliate
marketing
YouTube
video
marketing
Social media regular
post and maintenance
YouTube
influencer
marketing
Search
engine
marketing
Search Engine
Optimization
Social
media
marketing
DIGITAL MARKETING STRATEGY
17. DATA REPRESENTATION
Value DF
Asymptotic
Significance (2-
sided)
Pearson Chi-Square 10.534a 12 .569
Likelihood Ratio 11.127 12 .518
Linear-by-Linear
Association
1.000 1 .317
N of Valid Cases 136
Chi-Square Tests
a. 8 cells (40.0%) have expected count less than 5. The minimum expected count is .44.
Value df
Asymptotic
Significance
(2- sided)
Pearson Chi-Square 22.969a 16 .115
Likelihood Ratio 20.505 16 .198
Linear-by-Linear
Association
.002 1 .963
N of Valid Cases 136
Chi-Square Tests
a. 14 cells (56.0%) have expected count less than 5. The minimum expected count is .04
Value df
Asymptotic
Significance (2-
sided)
Pearson Chi-Square 22.969a 16 .115
Likelihood Ratio 20.505 16 .198
Linear-by-Linear Association .002 1 .963
N of Valid Cases 136
a. 14 cells (56.0%) have expected count less than 5. The minimum expected count is .04.
Value df
Asymptotic
Significance (2-
sided)
Pearson Chi-Square 7.165a 12 .846
Likelihood Ratio 7.628 12 .813
Linear-by-Linear Association .506 1 .477
N of Valid Cases 136
a. 13 cells (65.0%) have expected count less than 5. The minimum expected count is .07.
18. FINDINGS TO THE STUDY
Out of 20.6% people who wanted Savlon handwash 5.9% people wants Savlon at 40-60rs which makes Savlon the
third highest valued brand of the given (purchase by switch)
Out of 60.3% people who are satisfied with Savlon handwash and 22.8% people who wants Savlon liquid handwash
at 41-60rs which makes Savlon liquid handwash the least in this association (price by rating)
Out of 20.6% people who wants Savlon and 7.4% people wants from departmental store which makes Savlon
handwash the least preferred brand in comparison to another brand of handwash (preferred purchase place by
switch)
Out of 60.3% people 29.4% who wants to purchase Savlon liquid handwash from departmental store are satisfied
from Savlon handwash (preferred purchase place by rating)
Out 20.6% people 5.9% who wants to switch from other handwash brands due to promotional activities such as
discounts, bundle packs etc. which makes Savlon handwash least preferable brand. (promotional activities by
purchase)
Out of 60.3% people 25% who wants Savlon liquid handwash due to promotional offers such as discounts, bundle
packs etc. are satisfied.
CONCLUSION TO THE REPORT
According to our findings we come to a conclusion that the company should try to push the packaging worth 41-60 rps more into
departmental store and offers some starting promotional activities of bundle packs with the pump packs itself with a combined price
offer.
Recommendation
We would recommend that the Company needs to increase their promotional activities and improve their distribution channel.
Company should try to push the packaging worth 41-60 rps and offer some combo offers to attract more customers.
Limitations of the study
The limitations of this study are accessing to the retailers and outside vendors and conducting survey on different age groups was not
possible. The mode of conducting survey was although via online forms but the region was limited to college campus and thus in-depth
analysis was not possible.
Area/Scope of further research
The area for this research can be increased to a larger geographical area. Retailers and distributors can also be included as a part of study
and more variation in age group can be considered for conducting this research.